June 6, 2025 /SemiMedia/ — GlobalFoundries plans to invest $16 billion to expand its semiconductor manufacturing footprint in the United States, including upgrades to existing fabs and development of advanced packaging capabilities.

The company said it will allocate $13 billion to expand its production sites in New York and Vermont, while another $3 billion will fund R&D in advanced packaging and other technologies. The initiative aims to address rising demand for secure, locally manufactured chips, particularly from customers such as Apple, Qualcomm, and General Motors.

CEO Tim Breen stated that investment timelines will remain flexible and aligned with market demand. “Supply chain security is now a top priority,” he said, citing a notable rise in customer requests for U.S.-based production over the past six months.

Headquartered in Malta, New York, GlobalFoundries manufactures essential chips used in power control and data handling across automotive, communications, and AI-enabled applications. These chips don’t require cutting-edge process nodes but are critical for system functionality.

The $16 billion initiative is also a strategic response to surging demand from AI growth, which is accelerating the need for energy-efficient, high-bandwidth chips used in data centers and networking equipment. GlobalFoundries aims to strengthen its presence in emerging segments such as gallium nitride (GaN) power devices and optoelectronic integration.

Unlike rivals such as TSMC and Samsung, GlobalFoundries has shifted away from advanced-node competition to focus on profitable niches in mature process technologies. Backed by the Abu Dhabi government, the company’s annual capital spending has averaged $1.4 billion over the past five years. The latest move marks a sharp increase and signals a long-term commitment to U.S.-based manufacturing and technology development.